BMW GROUP IN CHINA - BMW Group - English · bmw group in china . dr. daniel kirchert senior vice...

BMW GROUP IN CHINA DR. DANIEL KIRCHERT SENIOR VICE PRESIDENT, SALES & MARKETING BMW BRILLIANCE AUTOMOTIVE MAY 22, 2012

CONTENTS.

– Looking back

– The BMW business model

– BMW retail network in China

– Outlook

BMW Group in China, D.Kirchert, May 22nd 2012

CHINA HAS ENJOYED STRONG ECONOMIC GROWTH OVER THE PAST 20 YEARS.

0%

2%

4%

6%

8%

10%

12%

14%

16%

2005 2007 2008 2009 2010 2011 0

2004 1999 2003 1998 1997 2002 1996 1995 2001 1994 1993 2000 1992 2006

45

50

40

35

30

25

20

15

10

5

GDP GDP growth

GDP: trillion RMB GDP growth: %

China GDP growth (1992-2011)

(Ø ~20 years = 10.4%)

Source: states statistic bureau BMW Group in China, D.Kirchert, May 22nd 2012

ALTHOUGH THE PV MARKET GROWTH RATE SLOWED IN 2011, THE PREMIUM SEGMENT HAS CONTINUED ITS RAPID GROWTH.

0.0

0.3

0.6

0.9

1.2

2005 2006 2007 2008 2009 2010 2011

~+37%

PV market : Million Units

PV and premium segment sales development (2005-2011)


Premium segment: Million Units

0.0

3.5

7.0

10.5

14.0

2005 2006 2007 2008 2009 2010 2011

~+7%

Source: sales data

BMW & MINI HAVE SUCCESSFULLY DEVELOPED OVER THE YEARS, OUTPERFORMING THE PREMIUM SEGMENT GROWTH.

233

169

91

66 52

2007 2010 2009 2008 2011

BMW Group sales development (2007-2011)

In ‘000 Units MINI BMW

Source: sales data BMW Group in China, D.Kirchert, May 22nd 2012

Premium segment Ø annual growth rate: +41%

BMW Ø annual growth rate: +46%

2012 YTD MARKET STATUS. BMW GROUP HAS OUTPERFORMED THE PREMIUM SEGMENT.

+33%

2012 YTD April

~380

2011 YTD April

~290

+35%

2012 YTD April

107

7

100

2011 YTD April

79

5

74

Premium segment development BMW+MINI development

Source: sales data

‘000 Units ‘000 Units


CHINA HOLDS A PROMINENT POSITION WITHIN BMW’S GLOBAL RANKING.

5

…

11

?

Market Model 7 Series X6 5 Series sedan 5er GT X5

largest largest largest largest 2nd-largest

2004 2008 2011

3

2012

BMW Group in China, D.Kirchert, May 22nd 2012 Source: sales data

CONTENTS.

– Looking back



– Outlook


COMPETING WITH SUBSTANCE. PRESENTING THE BEST QUALITY TO CUSTOMERS.

Localization People Partners

Products Brand-building Customer orientation


BMW PRODUCT LINEUP. MOST BMW GROUP PRODUCTS ARE ALREADY OFFERED IN CHINA. Locally-produced

Imported


WOW! MINI in China 2010! mini Product Lineup. Exciting MINI products in China.


UNDERSTANDING THE DIVERSE CUSTOMER BASE.

Directors/Executive management of (multi-) national companies

Young, self-made company owners / co-owners

Directors/managers in SOE Traditional company owners

Young professionals, executives


Attention & Care

Understanding & Action

CUSTOMER ORIENTATION BMW GROUP IS FULLY DEDICATED TO CUSTOMER SATISFACTION

BMW Group in China

Fulfillment & Success

Customer Orientation

MULTIPLE ENTITIES, ONE FACE TO THE CUSTOMER.

Dealer 1

Dealer 2

Dealer N

Dealer 3

NSC BBA

Customer / Point of Sale / Market

BMW China National Sales Company

BMW Brilliance Automotive


PEOPLE-CENTERED MARKETING STRATEGY HIGHLIGHTING EXPERIENCE AND EMOTIONS (1/3).


http://www.google.com.hk/imgres?imgurl=http://www.bmwtalk.org/wp-content/uploads/2010/03/BMW_logo.png&imgrefurl=http://www.bmwtalk.org/&usg=__cXbO4NJdHrMxmtN-2qM_QXB59Po=&h=564&w=564&sz=110&hl=zh-TW&start=1&zoom=1&um=1&itbs=1&tbnid=uHs1r-MqelIVrM:&tbnh=134&tbnw=134&prev=/images?q=bmw&um=1&hl=zh-TW&newwindow=1&tbs=isch:1


MINI Chinese Job Mission 3 Campaign

M Annual Event

BMW Brand day



2012 Beijing Auto Show


CCF - BMW WARM HEART FUND CONTINUE TO BUILD ON ITS SUCCESSES. On June 5, 2008, BMW China and BMW Brilliance jointly set up CCF - BMW Warm Heart Fund


THIS PERFORMANCE MAKES BMW THE LEADING AUTOMOTIVE BRAND IN CHINA.

Criteria

1. Well Made

2. Very Reliable Car

3. High Safety Standards

4. Advanced Technology

5. Environmentally Friendly Cars

6. Good Customer Service

7. Good Value For Money

8. High Re-sale Value

9. Good Looks/Styling

10. Makes Sporty Cars

11. Successful In Racing

12. Has Good Advertising

13. I Like This Brand

– BMW has earned NO.1 in ‘I like this brand’ in a row from 2002-2012.

– BMW is NO.1 in 4 main categories out of 13.


BMW IS THE MOST ADMIRED AUTOMOTIVE BRAND AMONG CHINESE CUSTOMERS.

World’s most valuable luxury brands 2012


http://www.hurun.net/zhcn/Default.aspx

CONTENTS.

– Looking back



– Outlook


290 BMW DEALER OUTLETS WERE IN OPERATION BY THE END OF 2011.

Number of Outlets

North 82

East 95

South 65

West 48

Total 290 SR Service outlet

4S

UCC


MINI ALSO MADE BIG STRIDES FORWARD AND 67 DEALER OUTLETS WERE IN OPERATION BY 31ST DECEMBER 2011.

S-SR A-SR 4S Total

North 9 6 1 16

East 15 4 2 21

South 11 5 0 16

West 10 3 1 14

Total 45 18 4 67


4S

A-SR/S-SR

BMW IS THE PIONEER TO EXPLORE NEW RETAIL FORMATS FOR HIGHER CUSTOMER SATISFACTION.

2003 - 2006 2007 - 2009 2010 2011 2012

4S

Showroom Fast Lane Rural

Service Center

M Showroom Fast Lane City

Used Car Center


SHAPING THE FUTURE OF RETAIL, 5S DEALERSHIPS BECOME A CRUCIAL FEATURE OF BMW’S SUSTAINABILITY STRATEGY IN CHINA.

5S dealership

Sustainable Mobility

Sustainable Training

Customer Orientation

Sustainable Design

Recycling & Waste Management

Sustainable Service Operation

Attractive Employer

CSR on Dealer Level

Customer Involvement

Economic Environment Social


FOCUSING NOT ONLY ON HARDWARE, 5S DIFFERENTIATES FROM OTHER OUTLETS BY THE EFFORTS IN CUSTOMER INVOLVEMENT, COMMUNITY LIFE AND EMPLOYEE CARE.

Waterborne paint Paint Shop Ventilation Car Wash Water Recycling

Social Contribution – BMW JoyHome

Health & Safety training Waste & Recycle training Wind turbines


5S CONCEPT WON POSITIVE FEEDBACK FROM THE MEDIA.


“ The introduction of the 5S leads BMW dealers into a new era. ”

“ The 5S concept, developed in China, may be rolled out globally. China

is also becoming an important source of BMW’s global brand strategy. ”

VARIOUS OUTLET TYPES TO ENLARGE THE SERVICE CAPACITY.

Fast Lane city

Service Centre

Body & Paint extension


CONTENTS.

– Looking back



– Outlook


BUOYANT OUTLOOK ON CHINA DESPITE SHORT-TERM CONSOLIDATION.

China GDP growth

2012 FC

8.0%~8.5%

2012 Q1

+8.1%

2011

+9.2%

– global economy is at a precarious stage and export growth slowed down

– domestic demand rising slower than expected

– continuing concerns of inflation, especially with rising oil prices

– real estate market cool down

Source: states statistic bureau, IMF, World Bank, Economist

Risks to China’s growth

China is accelerating the transformation of the pattern of economic development and heading to make economic development more sustainable and efficient


CONTINUED MOMENTUM FOR PREMIUM AUTO SEGMENT.

Source: sales data

Ø annual growth rate

+43%

2011

~1Mio

2005

~0.1 Mio


Premium segment development

Luxury growth expected to outpace overall market.

– Global Insight, 2012

Mid-term passenger vehicle market growth of 9% per year.

– LMC, 2012

BMW’S NEW 3 SERIES TWINS TO “GROW” IN THE MARKET.

New 3 Series

New 3 Series Long Wheelbase


THE NEW TIEXI PLANT – EXPANDED CAPACITY UTILIZING WORLD-CLASS TECHNOLOGY.

Leading through:

– “Cleanest” production within BMW Group (Benchmark comparison 2011)

– Lowest energy consumption – Lowest VOC emission – Lowest level of process waste

water

New Tiexi Plant

– Environmentally-friendly architecture and technologies

– to save heat, energy and water

– to ensure sustainable, clean production


UNCOMPROMISING IMPROVEMENT OF QUALITY IN AFTERSALES.

We are the first mover in many service initiatives: – Service Repair Package – Fast Lane Service – Accident Hotline


COMPREHENSIVE FINANCIAL SERVICES TO ADD IMPETUS TO FUTURE GROWTH.

Majority of vehicles are still bought without financing

– BMW Finance Automotive China started operations by end of 2010

– ~11% penetration in 2011


FUTURE MOBILITY ENGINEERED TODAY. PERSISTENT PURSUIT OF SUSTAINABLE DRIVING.

Source: Dow Jones Sustainability Index 2011

“BMW again heads the ranking of Dow Jones Sustainability Index in 2011 and thus becomes auto industry’s most sustainable auto manufacturer for seven consecutive years.”

Intelligent Technologies

Active Hybrid

BMW i


IN COMPARISON WITH MATURE MARKETS, CHINA’S NASCENT USED CAR MARKET HAS OPPORTUNITIES FOR LARGE GROWTH.

Used car volume

New car volume

Sales split of BMW Dealers worldwide(2010)


USED CAR IS A STRATEGIC BUSINESS AREA TO SUPPORT NEW CAR BUSINESS.

– BMW Premium Selection is a worldwide BMW used car program (since 2006 in China).

– BMW Premium Selection is Number ONE among competitors.

– Clear Used Car Strategy to develop the dealer organization with 1st UC Center in Shenzhen as role model

– Used Car will become a business unit, providing additional profit to dealers and support New Car sales


THE PROVEN “BMW MODEL” WILL ENSURE OUR CONTINUING BRIGHT FUTURE.


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